11 January 2012
Company Announcements
Australian Securities Exchange Limited
Level 4, 20 Bridge Street
Sydney NSW 2000
By electronic lodgement - 3 pages
ASX Code: BUR
Burleson Energy:
ABN 73 117 770 475
Burleson Energy Ltd
Registered Office / Administration Level 69 Barrack Street
SYDNEY NSW 2000
Australia
Mailing AddressGPO Box 92
SYDNEY NSW 2001
Australia
Phone: +61 2 8252 6177
Facsimile: +61 2 8252 6178
www.burlesonenergyltd.com
Update on Heintschel field Development
Oil and gas explorer and producer Burleson Energy (ASX: BUR)
is pleased to provide the following update on its activities
onshore in the Gulf Coast region of Texas.
Now that relevant third-party studies have been completed,
Burleson advises that planning for the next Heintschel field
development well remains on track for spud in late Q1,
2012.
Based on in-house assessment of those studies, the well is
being designed to drill a 2,000 foot horizontal section that
will be followed by a multi-stage fracture stimulation
treatment. This approach is expected to result in
significantly higher productivity per drilling dollar.
Looking beyond the next Heintschel well, BUR and its Colorado
County JV partners are assessing potential avenues to fund
the full development of this major in-ground asset, including
potential farm-out alternatives. In order to give development
of the Heintschel field industry exposure, AKG Energy (US
based operator and partner) has secured booths for the
Colorado County JV at the farm- out exhibitions NAPE in
Houston (late February 2012) and APPEX in London (early March
2012).
In the meantime, planning and preparatory work will be
finalised aiming at spudding the first horizontal well in the
Heintschel field late in Q1, 2012.
Further updates will be provided in due course.
For further
information visit the Burleson Energy website: www.burlesonenergyltd.com
Michael Sandy - Managing Director: +61 2 8252 6177
1
Background on the Heintschel field:Located in Colorado County Texas, the Heintschel field was discovered by the Heintschel #1 exploration well in October 2010. The well encountered a much thicker reservoir section covering a greater area than expected. To follow up the discovery, two successful appraisal wells were drilled in 2010, D.Truchard #1 and Heintschel # 2.
All three Heintschel field wells were brought on production and monitored for an extended period.
De Golyer and MacNaughton (D&M) undertook an independent reserves audit on behalf and confirmed the field is of significant size and can be commercially developed, even with vertical wells. Specialist consultants IPT undertook a study of the likely production from horizontal wells (with multiple staged fracs) and concluded that such well could produce several times the rates and volumes as the existing vertical wells.
D&M found that the Heintschel field contains 2P reserves of 34 bcf gas and 1 mmb condensate (6.7 million barrels of oil equivalent (mmboe)), based on three wells and an area of ~900 acres.
Burleson's share is 2.5 mmboe net to its 38% working interest and 2 mmboe net to its ~30% net revenue interest
(NRI).
Operator AKG and BUR believe the field (which covers 4460 acres) contains 100 to 160 bcf of gas plus condensate. BUR's NRI share in these cases would be 5 to 10 mmboe.
BUR has a current market capitalisation of $12m and $6m in the bank for an enterprise value of $6m, valuing its
2P WI reserves at less than $2.5 per boe.
A horizontal development is planned for late 1Q12.
2
Competent Person Statement:The information in this report that relates to oil and gas exploration results and hydrocarbon resources is based on
information verified by Mr Michael Sandy (BSc (Hons) Melbourne University), who is a petroleum geologist. Mr Sandy is a Director of, and consultant to, the Company. Mr Sandy has more than 30 years of experience in this discipline and he consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
3
distribué par | Ce noodl a été diffusé par Burleson Energy Limited et initialement mise en ligne sur le site http://www.burlesonenergyltd.com. La version originale est disponible ici. Ce noodl a été distribué par noodls dans son format d'origine et sans modification sur 2012-01-11 09:31:01 AM et restera accessible depuis ce lien permanent. Cette annonce est protégée par les règles du droit d'auteur et toute autre loi applicable, et son propriétaire est seul responsable de sa véracité et de son originalité. |
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Update on Heintschel Field development |